Downs council reviews Lincoln County Transit financials

A request to approve a document described as a precursor to obtaining federal funding for public transportation turned into a discussion about the financial status of Lincoln County Transit before the program's overseer, Ruidoso Downs. Approving the document was decided by Mayor Gary Williams, after the four-person city council deadlocked.

LCT Manager Patty DeSoto conceded the on-demand bus ride service in Ruidoso, Ruidoso Downs and a part of Mescalero is in need of additional revenue.

"Patty, would this be an accurate statement, at this point the transit is in arrears to the city, that they would need to pay back for the amount of about $72,000?" Ruidoso Downs City Councilor Dean Holman asked.

DeSoto said she had been discussing the matter with the city's finance director.

"It's something we need to go over," DeSoto said in reply to Holman's question. "There is a balance there of $33,000 in local match that we need to continue the operation. So the plan is to gather local businesses that we bring a lot of people to together and talk about it next Monday at 10 o'clock. We bring their employees to them. We bring them business. We bring them patients. We bring them students."

DeSoto said having businesses and the university help to fund LTC would allow the buses to keep running.

Holman said the money issue is not new and possible solutions have been voiced by DeSoto before.

"And yet nothing has materialized," Holman said.

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"The urgency of possibly losing transit may bear a difference to whether somebody would fund it or not," DeSoto said. "The cost of not having their employees at work everyday and not having business in the stores or coming to the doctor's appointment - that is a benefit that they have affordable transportation to get to and from those."

Finding funding

Lincoln County Transit operates on $88,000 in local funding. The local match opens the door to a $300,000 annual budget through federal mass transit grants. DeSoto said the public transportation buses served more than 25,000 riders last year.

"The need is there. People that use the service are very dependant on it."

Ruidoso Downs Finance Director Terri Mosley said at the close of the 2011-12 fiscal year last June there was a temporary transfer to LCT of about $39,000 from the city's general fund.

"And they haven't been able to repay that yet," Mosley noted. "So that's already taken out of the general fund. Right now, and I've just done an estimate, there would be another $30,000 that they're going to be in the negative, which the general fund will have to take care of."

Holman asked DeSoto about ways to cut back on LCT operations.

"Maybe we can stop doing Saturdays," DeSoto said. "Maybe shutting down for a couple of hours at midday."

But City Councilor Judy Miller questioned the idea of stopping Saturday service.

"I don't believe you should ever cut out weekends because of our tourists," Miller said. "Taking them to motels and taking them to the track, wherever."

DeSoto also said ridership has doubled while full-time employees at LCT have been trimmed.

"If we do bring in more money (through fares) it does reduce the local match," DeSoto said of the funding pledged by Ruidoso and Ruidoso Downs. "So it is beneficial to run a full service to get more revenue."

Holman noted the village of Ruidoso has "by far" the bulk of LTC riders and perhaps Ruidoso should operate the public transportation program.

"We asked this morning," DeSoto said of a meeting with village officials. "They said no, not at this time."

DeSoto debunked Holman's assessment that the village is providing less funding for public transportation than the city.

"They village is contributing $28,000, in that area," DeSoto said. "The city of Ruidoso Downs is contributing $25,000."

Holman asked if there has been city funding through the Ruidoso Downs lodgers tax.

"That's just in lodgers tax," DeSoto replied.

Holman said he has not been completely comfortable with using lodgers' tax revenues for LTC.

"The lodgers tax is supposed to be tourist related," he said. "It seems like we're really pushing it on that part."

Initially in 2008, Ruidoso, Ruidoso Downs and Lincoln County each pledged $25,000 in funding to get LCT close to the local match funding that provided federal grants which made up much of the money for the local public transportation program. But Lincoln County dropped out a couple of years ago.

City Attorney H. John Underwood said the Federal Transit Administration filing before the council was the first step in requesting a grant for the coming fiscal year. The 2013 Certifications and Assurances document is due at the end of March.

"I talked to DOT (Department of Transportation) today about it because I had a concern much like this being voiced by the councilors today about the ability to fund this thing," Underwood said. "I was assured by DOT that by sending this form in for certification and assurance that it's not an obligation on our part to either fund or go forward with it if the village should not fund it adequately in our opinion or should you be unable to raise other funds."

Underwood said failing to send the signed Federal Transit Administration document to the Federal Transit Administration would negate the opportunity to make a decision later.

With councilors Holman and Dale Perry voting against approval of the document, and councilors Miller and Tommy Hood in favor, Mayor Gary Miller broke the tie, advancing the Certificates and Assurance documentation.